The government of Buenos Aires has introduced a new mortgage credit initiative through Banco Ciudad, aimed at individuals currently spending a significant portion of their income on rent and seeking to purchase their first home. This new program offers an interest rate of 7.5%, which is notably lower than the 9.5% average market rate, as the local government subsidizes 2 percentage points to increase accessibility for families.

Eligible borrowers can finance up to 75% of the property's value under this new mortgage scheme. The initiative is part of broader efforts by the Buenos Aires government to alleviate the housing burden on residents, which has become increasingly pressing due to rising living costs and inflation. The program specifically targets first-time buyers, making home ownership more attainable for those who might be struggling to enter the property market due to high rental prices.

This move is expected to have significant implications for the real estate market in Buenos Aires, potentially boosting property sales and helping to stabilize the economy by promoting home ownership. It signals the government's commitment to addressing housing affordability issues and supporting families in achieving financial security through property ownership.